The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

General Motors CEO Mary Barra, profiled in my cover story in FORBES' 2014 Most Powerful Women issue, is only a few months into her new job and facing one of the worst safety crises in the history of the auto industry. We had a fascinating interview recently about GM's turnaround progress, the ignition switch recall and how she's using the crisis to accelerate change within the company. Here are excerpts of that conversation:

Forbes: You’ve had a rough honeymoon as CEO. How are you managing to handle this crisis and settle into your new role?

A lot of work was already done. The foundation is set and we’re moving it forward, and accelerating. I feel really good about the leadership team. I’ve made a couple of changes but we’re together, we’re aligned and I think there’s power in that. Clearly this is an issue. It’s a serious issue and we want to deal with it appropriately and take the right action but there’s also a real opportunity to accelerate some of the things we knew we had to get to.

Forbes: GM has made a lot of progress since bankruptcy. Where do you take the business from here?

We want to continue to make sure products are at the core so that we're segment-leading for every market we compete in, and that we’re being true to the brand. I think we have great products right now, but the brands need work. Cadillac, for example, has a really strong showroom…but I look at it and say, is it a true standard for luxury? We’re working on that in the United States, and I think we have a huge opportunity for Cadillac in China, and then globally.

Forbes: You discontinued Chevrolet in Europe to focus on Opel. Is GM Europe fixed?

Karl-Thomas Neumann (president of GM Europe) has done an outstanding job, and assembled a strong team. The business issues are behind us in that we’ve got a plan. What gives me confidence is that we’re now talking about the product again. The Mokka, Adam, Insignia – they all have done very well.

Forbes: Will you break even in Europe in 2015 as planned?

We said ‘mid-decade.’ I think we’re on track. Karl-Thomas is positive. That’s a business we think will be back on track and contributing. The economy will gate a bit of it. We’re seeing some positive signals. But the good thing is, whether it’s a slower recovery or a quicker recovery, we’ve got the right products there for Opel to be a substantial player. And I think we’re seeing it already.

Forbes: The cost of GM’s safety recalls is eating up profits. Are your mid-decade financial targets at risk?

We’re focused on making sure we handle the recall appropriately, taking care of our customers, doing the right thing and then moving forward. I’m not going to start to change what the future goals are for the company because I still think there are a lot of levers we can pull and need to pull and we will pull to continue to drive the business forward.

Forbes: Let’s talk about culture. Where does culture change start? Does it bubble up from the bottom, or down from the top?

It has to be leader-led. Dan (Ammann, GM president) and Mark (Reuss, product development chief) and I have a very strong partnership and a consistency between the three of us, in how we're conveying to employees what’s important, how we’re going to manage this, and continuing that communication so they feel confident.

Forbes: In a recent Town Hall meeting with employees, you lamented that there’s still a “culture of fear” within GM, a fear of rocking the boat. How do you convince people it’s ok to speak up?

First, it’s having programs like Speak Up For Safety. If someone picks up the phone and says, “Hey, I’m worried about x, y or z, it’s important that you answer them, either to say, ‘Wow, thank you for raising that issue,’ or ‘Hey, that’s not an issue and here’s why,’ so they don’t leave thinking, ‘I tried, and they didn’t listen to me. They just ignored me.’

It also is me demonstrating the culture and making sure the leadership (follows through). Because they can hear me, they can even believe me, but what is their daily work experience like? What is it like in their department?